CAE Inc (CAE.TO)

This has been a great turnaround story. A great business. He has exposure to the aerospace sector through another company, which he prefers. The chart on this looks great, and the valuation isn’t stretched by any means. If you don’t hold something in the aerospace sector, this would be a high-quality name to own. He doesn’t see a lot of risk in the near term.

(A Top Pick Oct 16/15. Up 33.58%.) Airlines are facing a very big problem in that a whole bunch of commercial pilots are going to be retiring in the next 10 years. This company is also makes money on the military side. This is still a good opportunity.

(A Top Pick Nov 13/15. Up 34.24%.) This has gone up considerably and is getting to a point where it is close to being fully valued. It has always been an extremely well-run and well thought out company, and one of the major players in the flight simulator/training business. If it were a few dollars higher, he would probably be taking some profits.

He is becoming quite warm toward defense stocks. This is on his watch list. They are one of North America’s largest civil flight trainers. There has been an increase in defense training in the US. There is an annual shortage of 60 thousand pilots.

Makes simulators for either planes, defence or healthcare. Earnings have been cranked up by about 4% in the last 90 days, and are expected to grow from $.98 to $1.05. 14% ROE. On a longer-term basis, there are a whole bunch of pilots that will be retiring in the next 3-5 years, if not 10, and it is a lot cheaper to train pilots with a videogame than with flying a real plane. 1.68% dividend yield.

(A Top Pick Feb 27/15. Up 30.92%.) (BNN Showed “Oct 29/15” in error, so percentages may not be accurate.) This is a leader in the simulation space. He sold his holdings locking in his gain.

The chart shows a trading range from 2014 on, which it has just broken out of, which is always a good sign. It reached a higher high, and is now testing that high. Retesting the high indicates that buyers are so convinced that they do not mind paying previously high prices. It also means that sellers have been exhausted.

(A Top Pick May 15/15. Up 14.34%.) Still likes this. There are a large number of pilots who will be retiring over the next 3-7 years, and it is a lot cheaper to train someone using this company’s simulators, rather than actual airplanes. They are doing really well on both commercial and military sides.

(Market Call Minute.) Has had a recent rally, so it would probably be Sell.

A great company. A lot of technology and a lot of grey matter there. They benefited from the global growth in aviation, etc. Military spending slowed down, but they were able to replace that with the aviation growth. Has a hard time seeing the stock doubling from here over the next 5 years or so.

This has had an incredible run. They are leaders in the field. It is a good company and well-run.

(A Top Pick March 24/16. Up 9.97%.) This has been a frustrating stock technically, because it has a long series of lower highs. He now thinks it is above that. He is also bullish on the aerospace sector.

Fundamentally, this is in the industrial space as well as in the aerospace space. The aerospace peers are doing well. As long as he can remember, the US has been at war with somebody. Technically, this has a long series of tops of around $15.50, and it has finally broken out. With this break out, he thinks this works higher. Once you start breaking out of all-time highs, there is no cap.

(A Top Pick June 8/15. Up 12.74%.) This has appreciated a fair amount in a short period of time. Feels it is one of Canada’s leading technology companies, and they are in excellent markets, whether military or civil. Thinks there is going to be a huge renewal in their fleets and commercial systems, but also a changeover in the pilots who have to be trained. He would look to buy this at under $15.

Has always been leery about this industry. There is a lot of volatility in it. It trades along with the aerospace names, and is just not the stable stock he is looking for. Also, there are some other players in the industry, and it is really about capital.